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Question
Northwest Fur Co. started 2021 with $108,000 of merchandise inventory on hand. During 2021, $510,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,100. Merchandise with an invoice amount of $3,700 was returned for credit. Cost of goods sold for the year was $373,000. Northwest uses a perpetual inventory system.
What is ending inventory assuming Northwest uses the gross method to record purchases?
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